Week 1

Introduction to
IPE
Introduction to International Political
Economy (IPE)
• Definition of IPE: International Political Economy (IPE) is a
multidisciplinary field that explores the complex interplay
between politics and economics in the global context. It
examines how political institutions, policies, and power
dynamics influence international economic relations.
• Significance in Today's World: IPE is of paramount importance
in the modern world, where nations are increasingly
interconnected through trade, finance, and diplomacy.
Understanding IPE is crucial for comprehending global
challenges, economic crises, and international cooperation.
Scope of IPE

• Interplay of Politics and Economics: IPE acknowledges that

politics and economics are not isolated realms but are deeply
intertwined. Political decisions and policies impact economic
activities, and economic changes can have profound political
consequences.
• Key Concepts: Key concepts in IPE include globalization (the
interconnectedness of economies), sovereignty (the authority of
states), and comparative advantage (a country's ability to
produce goods efficiently).
Historical Evolution

• Emergence of IPE as a Field: IPE emerged as a distinct field of

study in the mid-20th century as scholars sought to understand
the post-World War II international economic order. It gained
prominence with the rise of globalization.
• Historical Context: The historical context of IPE includes major
events such as the Bretton Woods Conference in 1944, which
laid the foundations for the post-war economic system, and the
end of the Cold War, which reshaped global economic dynamics.
Theoretical Frameworks in IPE

• Major IPE Theories Overview: This slide provides an overview

of the three major IPE theories: Mercantilism, Liberalism, and
Marxism. These theories offer distinct perspectives on the
relationship between politics and economics.
• Mercantilism, Liberalism, and Marxism: Each theory represents
a unique approach to understanding how states, markets, and
international institutions interact in the global economy.
Mercantilism in IPE

• Mercantilist Perspective: Mercantilism in IPE emphasizes a

nation's economic wealth and power as being based on the
accumulation of precious metals (such as gold and silver)
through trade surpluses.
• Mercantilist policies often involved government intervention in
the economy, protectionism (high tariffs and trade restrictions),
and the pursuit of a positive balance of trade
• Key Mercantilist Thinkers: Prominent mercantilist thinkers in
IPE include Thomas Mun and Jean-Baptiste Colbert.
Liberalism in IPE

• Liberal Perspective: Liberalism in IPE stresses cooperation,

international institutions, and free markets. Liberals believe
that peaceful cooperation and economic interdependence can
lead to global stability.
• Key Liberal Thinkers: Notable liberal thinkers in IPE include
Adam Smith, John Locke, and institutions like the World Trade
Organization (WTO).
Marxism in IPE

• Marxist Perspective: Marxism in IPE examines the global

economic system through the lens of class struggle, capitalism,
and exploitation. Marxists argue that global capitalism
perpetuates inequality.
• Key Marxist Thinkers: Influential Marxist figures in IPE include
Karl Marx and Vladimir Lenin.
Comparative Analysis

• Contrasting Mercantilism, Liberalism, and Marxism: This slide

highlights the key differences between these three major IPE
theories, allowing students to understand their distinct
perspectives on international economic relations.
• Key Differences: The comparative analysis will explore how each
theory views the role of states, markets, and international
cooperation.
Strengths and Limitations

• Mercanlilist's strength lies in its recognition of power dynamics

in international relations, but it may oversimplify complex
global issues.
• Liberalism promotes cooperation and stability but may overlook
power disparities.
• Marxism provides a critical lens on inequality but may
underestimate the potential benefits of free markets.
Understanding these strengths and limitations helps us apply
these theories more effectively to real-world situations.
Real-World
Application
• Influence on Global Policies: Explore how
IPE theories shape real-world policies
and decisions made by governments and
international organizations.
• Case Studies: Provide concrete examples
of how Realism, Liberalism, and Marxism
have influenced international economic
policies and events.
Discussion Questions

1. How does the interplay between politics and economics shape international
relations and global economic dynamics?

2. How do IPE theories influence real-world policies and decisions made by

governments and international organizations?

3. How can you apply the major IPE theories—Mercantilism, Liberalism, and
Marxism—to analyze contemporary global economic issues?

4. Can you explain the major theoretical frameworks in IPE, specifically

Mercantilism, Liberalism, and Marxism, and how they influence international
economic relations?
THANK YOU